Critics have blamed eBay (NSDQ: EBAY) for failing to make improvements to its site, and questioned whether it can remain an e-commerce leader. The company has stumbled somewhat as of late—revenue declined 7 percent and 11 percent, respectively, the past two quarters. But Collins Stewart analyst Sandeep Aggarwal believes the company is starting to turn itself around, citing a number of improvements in an analysis of the site released today:

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—Improved search functionality: Aggarwal said the company had improved its search algorithm to better highlight products sold by members with the highest seller ratings, which he believes could lead to more sales and a better consumer experience (buyers want to be matched with the highest-quality sellers).  In addition, Aggarwal noted that search helps customers looking for a fixed price versus an auction because it is moving more toward emphasizing seller ratings in its results versus the time remaining in an auction (which is not included in listings for products with fixed prices). 
—Better selection: Aggarwal believes that by lowering its listing fee and allowing up to five free listings under the auction format, eBay will get more sellers to list products, which will lead to better selection on the site.
—More free-shipping listings to entice buyers: In the past, buyers at eBay have complained about excessive shipping fees (sellers who often profited by charging more than it actually cost to ship).  Aggarwal said the company has been encouraging and incentivizing sellers (he did not provide specifics) to offer more free-shipping deals, and an analysis of the site indicated as much as half of eBay’s listings offer free shipping versus single-digit numbers in 2008.